Ways to Increase Your Credit Score and Lower Your Mortgage Rate

If we knew how important maintaining a good credit score was, undoubtedly we would have made many different decisions when it came to finances in the past. Unfortunately growing up in high school, people of our generation learned very little about the importance of keeping and maintaining a good credit score.

Now, we are in the market to purchase a home. Alternatively, maybe we have already purchased a home. However, because of having poor credit the interest rate we are being charged every single month is exorbitant. So then the question becomes how in the world can we repair are credit score and by extension lower our mortgage interest rate?

First Check Your Credit Score

It stands to reason that we really cannot repair our credit, if we do not have a good idea of where our credit currently is. Therefore, the first thing that we need to do is get a copy of our credit report. Once we have the credit report in front of us, then it is time to start to look for any errors.

Something that many people do not realize is that at times clerical errors might be part of the reason why their credit score is so bad. Things to check for are late payments that are wrongly attached to your account.

Also, confirm that the amount of money that it is said he you owe on your accounts is correct. If any of these things are wrong vigorously, fight them with the credit bureau and with the different reporting agencies.

Remind Yourself to Make Your Payments

Now that you have seen your credit report you know whom you owe money. In the same way, that the only way a person can lose weight is by doing exercise, so too the only way that a person can fix their credit is by working hard and paying back the money that they owe.

So, use different programs to remind you of when certain bills are due. Maybe you have a program that will send you an email or text message reminding you that on this day your credit card is due.

Alternatively, have your credit card company set up automatic payments. Even if you are only making the minimum payment with consistency, this is going to help you increase your credit.

Free Yourself from Debt

Anyone who is struggling with debt understands something, having debt is like having a rock tied around your neck. It is debilitating. It prevents you from doing anything. In addition, in the case of an individual who has a mortgage payment, the debt that they have is leading to them having to pay higher interest every single month.

So, do whatever you can to reduce your debt. Stop using credit cards. Only pay with cash. Dedicate your energies towards paying off your highest interest credit cards first. While constantly paying the minimum on your other cards. Little by little, you will watch with joy as your credit score increases and your debt disappears.